• A homeowner is 'short' when the dollar amount owed on his/her property is greater than the current market value of the home.
• A short sale occurs after the homeowner's mortgage company (or companies) agree to accept less than the full balance of the loan at closing. A buyer makes an offer on the property, which, if accepted by the seller (mortgage company) is 'sold short' of the total value of the mortgage(s).

In many cases, for homeowners to qualify for a short sale, they must fall into one or more of the following circumstances:

• Financial Hardship – Situation(s) causing you to have difficulty in affording your mortgage.
• Negative Equity - Homeowner owes more than their home is worth.
• Mortgage Interest Rate is (or will soon be) adjusting upwards.
• Job Loss or Reduction in Hours - for one or both of the income earners within the household.
• Monthly Income Shortfall – In other words: "You have more month than money." This can be caused by an Adjustable Rate, but can also be due to medical or other unexpected expenses. The lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
• Insolvency – The lender will want to be assured that you are not in possession of any significant assets that, when sold, would allow you to pay down your mortgage.
• Moving - due to job loss or job relocation or other life changing event.
• Military Enlistment and/or Relocation
• Divorce

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals.